Bank of America Predicts Solid Growth for Northern California.

SAN FRANCISCO--(BUSINESS WIRE)--June 3, 1999--

Northern California will have a projected employment growth rate of 3.0 to 3.5 percent in 1999, even if manufacturing and other export-driven businesses, including agriculture, remain weak through mid-year, a Bank of America Economic Outlook predicts.

"California's economic success can be attributed to the strong U.S. economy and to the state's economic diversity and leadership role in many industries," said Jeanette Garretty, director of market research and planning at Bank of America in California and author of the report. "These factors are clearly at work in Northern California."

Garretty says the challenge facing Northern California in 1999 and beyond will be to recognize the change inherent in the rapid growth of a diverse economy and to capitalize on the opportunities represented by that change.

The report also highlights the changes and opportunities facing the major sub-regions within Northern California.

-- San Francisco-Oakland-San Jose Metro Area: This region sent

almost 60 percent of Northern California's exports to Asia in the

1990s. A recovery in key economies in Asia is important to

returning the core Silicon Valley economy to 1.5 to 2.0 percent

growth in the second half of 1999.

-- Sacramento Valley: This region is expanding rapidly as population

and businesses migrate to the area. This growth will help

minimize the negative effect of base closures in the immediate

Sacramento area and the inevitable uncertainties of the

agriculture business.

-- Coastal and Mountain California: This region is likely to

experience its own version of rural vs. urban clash, played out

in changing demographics and new employment opportunities. The

region will continue to serve the tourism and natural resource

needs of the state.

-- San Joaquin Valley: This region faces infrastructure challenges

and water cost and availability remains a long-term issue. The

unemployment rate has been and will continue to be extremely

high, reflecting the youth, size and growth of the labor force in

the region. With tight labor markets plaguing the rest of the

state and the country, an ample supply of labor is a true

competitive advantage, if that labor force can be given the

skills required by thriving nonfarm business.

Bank of America, with $614 billion in total assets, is the largest bank in the United States, with full-service consumer and commercial operations in 22 states and the District of Columbia. Bank of America provides financial products and services to 30 million households and 2 million businesses, as well as international corporate financial services for business transactions in 190 countries. Bank of America stock (ticker:BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange.